The pandemic has caused some markets to crash and some to explode. When it comes to the housing market, the idea of a market crash looms in the minds of some Americans, but that’s not the case for everyone. Since the pandemic, we have seen housing loan interest rates hover around 2%. Aside from that, homes for sale do not stay on the market long and sell way above their asking price. If you’re looking to get into real estate but the market is too hot right now, here are a few alternative ways to invest in real estate.
Real Estate Investment Trusts (REITs) are one of my favorite types of investments right now. Many of the companies under this moniker have been around for seventy years. Over the years, less than a handful have gone out of business, which means longevity within the sector. REITs are completely undervalued, with many companies’ hoovering well below their 52 week high. Coupled with high dividend yields, this means a potentially high upside. Some of my favorite REITs right now are Investico Mortgage (IVR), Ag Mortgage Investment Trust (MITT), and Western Asset Mortgage Capital (WMC).
Another way to get into the real estate game is through crowdfunding. Crowdfunding is when many investors raise money for a particular project or investment. Each investor contributes a small portion of the necessary funds. In a small amount of time, a lot of money can be generated. In return for their contribution, investors can gain shares in a company or real-estate property. They also get a share of the revenue generated from that property without ever owning it. The best real-estate crowdfunding sites include Funraise, Yeildstreet, and RealtyMogul.
If you’re not looking to buy but still want to get into real estate, you can turn your property into an investment. If you have guest rooms that are not being used by occupants of the home, turn them into profit. You should decorate your space and put fresh linens on the bed. Be sure to make the guest suite feel like a home away from home. Snap a few pictures of your space and advertise your rooms for rent on sites like Airbnb and VBRO. If you have a car that’s not being used, you can tie it with the rental room or advertised it for rent on Turo to make even more cash.
There are many ways you can invest your money. While purchasing physical property is getting more competitive, there are other ways to invest in real estate. Check out the posted video for more information.